Equity Release Club Frequently Asked Questions For adviser use only not to be used with customers Information correct as of: 5th October 2018
Do any of the providers consider Age Restricted properties? Yes, there are several providers who are happy to consider age restricted properties such as McCarthy and Stone properties. Please see the table below for the providers who will consider age restricted properties: Please note: If the property is a flat or maisonette, L&G Home Finance will still use their standard rule of 85% of the property value. Do any of the providers consider ex-local authority / ex-housing association properties? Flats/Maisonettes There are 3 providers who will consider ex-local authority / ex-housing association flats or maisonettes. Aviva Subject to a minimum valuation of 75,000. Aviva will use 85% of the property value for all flats and maisonettes and the property must meet their standard criteria for flats and maisonettes. L&G Home Finance Subject to a minimum valuation of 150,000. L&G Home Finance will use 85% of the property value for all flats and maisonettes and the property must meet their standard criteria for flats and maisonettes. OneFamily Subject to a minimum value of 250,000 and the property must meet their standard criteria for flats and maisonettes. Canada Life Subject to minimum value of 70,000 and the property must meet their standard criteria for flats and maisonettes. Houses All of the providers will consider ex-local authority / ex-housing association houses subject to valuation and the property meeting their standard criteria for a house. Do any of the providers consider properties which have solar panels? Leased If the solar panels are leased, generally the providers would want to see a copy of the lease before they make an informed decision. All providers except for L&G Home Finance will consider leased solar panels and Aviva have a list of companies who they will accept so they would need to check that the leasing company is on their panel. Owned All of the providers will consider a property, subject to valuation, that has solar panels which are owned by the client.
Do any of the providers consider a single application for a married couple? Yes, there are a few providers who will consider this scenario. They are: JUST property must be solely owned. more 2 life If the spouse is not of Equity Release age. OneFamily property must be solely owned. Pure Retirement property must be solely owned. Canada Life property must be solely owned. Do any of the providers consider a property which is held in trust? No. None of the providers would consider a property that is held in trust or a portion of the property is held in trust. The trust would need to be dissolved before any of the providers would consider it. Concrete construction? This would depend on the specific construction type. See the table below: Will any of the providers consider an application for a couple on a tenants in common basis? Yes, all of the providers except for LV= will consider this providing an agreement is in place and there is no discretionary trust in place
What is the minimum LTV for each age? Do any of the providers consider a property that isn t the clients main residence? Buy to let if the property is classed as a buy to let or is rented out to anyone, Canada Life are the only provider who would consider this. Holiday homes/second homes LV= and Canada Life will consider holiday homes or second homes. The property must not be let out for any longer than 4 weeks in total per year. The applicant must use the property for a minimum of four weeks per year. The property cannot be advertised for letting. If acceptable with LV=, a 10 percentage point reduction will apply to the usual maximum LTV. Will any of the providers consider a Timber framed property? Aviva After 1995 - Acceptable subject to valuation. 1965-1995 refer may accept subject to valuation. Pre 1965 - Non-Period property won't accept. Period property is acceptable. Hodge Timber framed walls with a cavity and outer wall of brick built after 1965 are ok. JUST Unable to consider timber construction between 1900-1965 L&G Home Finance Post 1960 considered. Anything before refer for individual consideration. LV= - Post 1960 subject to individual underwriting more 2 life Post 1965 with an outer skin of brick or stone and compliant with building regulations. OneFamily Post 1960 considered Pure Retirement Post 1965 considered. Canada Life Yes, post 1960 refer to underwriter. Historic Timber framed properties also refer to underwriter.
Will any of the providers consider a Steel framed Property? Aviva Post 2000 are acceptable Hodge No, do not consider steel framed properties. JUST Post 2000 are acceptable L&G Home Finance Built after 2001 - subject to individual consideration. LV= - Post 1980 subject to individual underwriting more 2 life Post 2000 are acceptable. OneFamily built after 31st December 2000 are acceptable Pure Retirement Post 2000 are acceptable Canada Life built after 31st December 2000 are acceptable What is the minimum time the clients need to be in the property before they can take Equity Release (if not being used as a purchase)? Aviva, L&G Home Finance, LV=, more 2 life, OneFamily, Pure Retirement and Canada Life no minimum time. They can take Equity Release straight away providing it is their main residence. Hodge The clients need to have owned the property for at least 6 months & its need to be the main residency before they can take out any equity from the property. JUST As long as the clients are listed on the title they can look to accept for equity release regardless of the length of time the clients have been in the property Would any of the providers consider a property with a flat roof or part of the property has a flat roof? Aviva Generally anything under 25% usually accepted. Anything over is subject to valuers comments. Hodge Flat roofs of traditional materials where the area is less than 30% of the total roof area. JUST Yes up0 to 100%, if in good condition. Subject to valuers comments L&G Home Finance Yes, will consider up to 25%. Refer to lender if over. LV= - Flat roof properties may be acceptable depending on the percentage of flat roof and the construction material used. They can generally accept up to 30% for felt flat roofs (as a percentage of the total roof area). They may accept a higher percentage (up to 50%) if the flat roof is not constructed of felt and has valid guarantees. Please refer to Underwriting for consideration more 2 life Acceptable subject to traditional covering being used and satisfactory comments by the valuers. OneFamily Properties that have a flat roof not exceeding 25% are acceptable Pure Retirement Reviewed on a case by case basis up to 100% Canada Life Reviewed on a case by case basis up to 100% What is the minimum lease term each of the provider will consider? Aviva Minimum lease term of 160 years minus the age of the younger applicant. Hodge Minimum unexpired lease term of 90 years. JUST Minimum unexpired lease term of 120 years L&G Home Finance Remaining lease plus the age of the youngest borrower must be at least 185 years. LV= - Age 60-70 - min 90 years, Age 71-80 - min 80 years, Age 81+ : min 70 years more 2 life Minimum unexpired lease term of 75 years OneFamily Leasehold properties with an unexpired term of at least 155 years minus the age of the youngest applicant, or 75 years whichever is the greater, plus confirmation at legal stage that lease is marketable with no onerous clauses Pure Retirement Leasehold tenure with an unexpired term of at least 145 years minus the age of the younger borrower, or 65 years whichever is the greater. Canada Life 155 minus age of youngest borrower or 75 years. Which ever is the greater.
PDF download available here: http://www.equityreleaseclub.com/media/1342/ frequently-asked-questions.pdf Prepared by the Equity Release Club for adviser use only.